NEWFOUNDLAND REGULATION 45/99

Newfoundland and Labrador Child
Benefit Regulations
under the
Income Tax Act
(O.C. 99-218)

(Filed May 27, 1999)

Under the authority of section 32 of the Income Tax Act, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John's, May 20, 1999.

John R. Cummings, Q.C.
Deputy Clerk of the Executive Council

REGULATIONS

Analysis

        1.   Short title

        2.   Definitions

        3.   Qualified dependant

        4.   Child benefit calculation

        5.   Benefit reduction calculation

        6.   Commencement

Short title

        1. These regulations may be cited as the Newfoundland and Labrador Child Benefit Regulations.

Definitions

        2. In these regulations

             (a)  "Act" means the Income Tax Act; and

             (b)  "NLCB" means the Newfoundland and Labrador child benefit as defined in paragraph 4.6(1)(b) of the Act.

Qualified dependant

        3. A person who is a qualified dependant of an eligible individual on the first day of a month is a qualified dependant of that individual for that month.

Child benefit calculation

        4. The amount of the Newfoundland and Labrador child benefit that applies for a qualified dependant of an eligible individual that is considered to have arisen during a month in relation to which the year is the base taxation year is the amount of NLCB, if it is positive, calculated according to the following formula:

NLCB = 1/12[(A + B+ C +D) -E]

where:

              A  equals $204 for the first qualified dependant;

               B  equals $312 for the second qualified dependant;

               C  equals $336 for the third qualified dependant;

               D  equals $360 times the number of qualified dependants in excess of 3; and

               E  equals the benefit reduction calculated under section 5.

Benefit reduction calculation

        5. Where the adjusted income of an eligible individual for a base taxation year, in relation to a month,

             (a)  is less than or equal to $15,921, the benefit reduction "E" shall equal zero; and

             (b)  is greater than $15,921, the benefit reduction "E" shall be calculated by multiplying the difference between the adjusted income and $15,921 by

                      (i)  4.08% where there is one qualified dependant,

                     (ii)  10.32% where there are 2 qualified dependants,

                    (iii)  17.04%, where there are 3 qualified dependants, and

                    (iv)  the total of 17.04%, and the product obtained by multiplying the number of qualified dependants in excess of 3 by 7.2%.

Commencement

        6. These regulations shall come into force on July 1, 1999.

©Earl G. Tucker, Queen's Printer